Why Receiving Monthly Payments Is Important
Operating a small business requires you to receive payment for your services or products. As a digital marketing consultant your payment is attached to your time, expertise, and marketing channels you invest in.
An effective campaign starts with understanding the clients needs, thinking a solution, creating a strategy, identifying channels to invest within, and executing on the strategy.
Payments go to vendors, connections are made, and business strategies are released.
What Happens When You Don't Receive Payment?
- Automatically, an equity of trust diminishes from the equity bank. Trust is a hard factor, hard to gain, and easy to lose.
- The Small Business Owner loses opportunity cost, what else could they have done in the time spent? What other investments?
- Profits diminish, operating cost from production remain the same (deliverance of product), forecasting becomes construed, and financials become out of sync.
- Employees may receive less in payments, stunts financial growth, and becomes an overall problem.
When running a business not receiving money is a part of playing the game. Think of accounts receivables and accounts payable. Both those terms means an outstanding balance, whether you owe or owed.
Customers will become upset, payments will become delayed, time would be wasted, products will be delivered, services acquired, people to pay, channels to pay, money to receive, investments to make....the list goes on and on.
What Can You Do?
As a salesperson, bring up the objection first, overcome it, and control the objection. What else could you do?
- Inform the client of the payment terms. Explain what happens without payment, and what happens with.
- Look at your great paying clients: What separates them from your late payment clients? That is your ideal target.
- Set up automatic payments, and lower your net payment terms
- Send Email Alerts Payments Are Coming, A Week Before (Send them a calendar invite letting them know payment is due on the day every month in a reoccuring fashion)
- Trust me....this will let you hear the excuses or the misfortunes before it happens instead of after.
- See what causes late payments in clients, identify the problem, and find how to solve.
What do you when clients pay late? Comment Below.